THE FCA DOES NOT REGULATE SOME FORMS OF BUY TO LETS, THINK CAREFULLT BEFORE SECURING OTHER DEBTS AGAINST YOUR PROPERTY
Buy To Let
Thinking about investing in property? Whether you’re a first-time landlord, or an experienced investor growing your portfolio.
Check what your mortgage may look like, in 3 easy steps
Buying or remortgaging shouldn’t be guesswork. Tell us a little about what you are wanting to do and we’ll give you the highlighted figures.
Step 1 of 3
What type of mortgage are you looking for?
First Time Buyer
Buying your first home
Moving Home
Buying a new property
Remortgage
Switch your current deal
Buy to Let
Investment property
The FCA does not regulate some forms of Buy to Lets. Think carefully before securing other debts against your home/property.
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We’re with you the whole way
Your investment mortgage journey
Buying or remortgaging isn’t just about the mortgage, and at Chat Mortgages we want to be there for you every step of the way.
Work out your budget
Before anything else, establish whether the investment stacks up financially. Use our buy to let calculator to get a clear sense of the rental income you’d need to cover the mortgage, the deposit required, and what your monthly costs and yield might look like. Factor in all of the costs involved, not just the mortgage, so you have a realistic picture of the investment before you commit to anything.
Get your finances in order
Buy to let lenders assess both your personal financial position and the viability of the rental income, so it’s worth having both in good shape before you apply. Check your credit file, make sure you’re registered on the electoral roll, and have a clear picture of your personal income, existing mortgage commitments, and any other financial obligations. If you already own other rental properties, having details of those readily available will also speed up the process.
Chat to us
Buy to let mortgages are assessed differently to residential ones, and lender criteria vary significantly; particularly around rental income requirements, portfolio size, and personal income thresholds.
Your advisers will assess your full circumstances, identify the most suitable lenders and products for your situation, and obtain a Decision in Principle before any hard searches are run on your credit file.
Whether you’re buying your first investment property or adding to an existing portfolio, getting the right advice at this stage makes a significant difference to both the outcome and the cost of the mortgage.
Find a property and make an offer
With your Decision in Principle in place, you can search for the right investment property knowing what you can borrow and what rental income you’ll need to support it.
When you find a suitable property and your offer is accepted, your Chat Mortgages adviser will submit the full mortgage application.
The lender will carry out a valuation of the property, assessing both its market value and its rental potential, before issuing a formal mortgage offer.
Instruct a solicitor
You’ll need a conveyancing solicitor to handle the legal side of the purchase; carrying out searches, reviewing contracts, and managing the transfer of ownership.
Your adviser will be able to recommend one with experience in buy to let transactions, or you can find your own.
Once searches are complete and all parties are satisfied, contracts are exchanged, your deposit is paid, and a completion date is set.
Completion
On completion day the mortgage funds are transferred, the remaining balance is paid to the seller, and ownership of the property passes to you.
You’re then free to let the property
Mortgage Guides & Tips, Coming Soon
We are working on bringing you a library of resources so if you have a question, you’ll have an instant answer.
Support you need, flexibility you want
Mortgages aren’t one-size-fits-all, especially for businesses. Our process is smooth, simple, and tailored to your goals.
Dedicated mortgage advisor
Your advisor, start to finish, one point of contact who gets to know your situation and works in your corner.
Same day appointments
Advice when you need it, no more 60 minute visits to an office. Speak to an advisor from your home, for as long as you need. Same day.
Find you the right deal
The right mortgage, not just any mortgage. We search the market to match you with a deal that fits your circumstances, not just your budget.
Guidance until you get your keys
We don’t disappear after the paperwork. From application to keys in hand, we keep you informed and supported every step of the way.
Smart tools to guide
your next move
The big questions
See your estimated monthly payments and affordability so you know what to expect before you apply.
Let’s talk mortgages
How is a buy to let mortgage different to a residential one?
The key differences are in how affordability is assessed and how the mortgage is structured.
Rather than basing the loan primarily on your personal income, buy to let lenders assess whether the expected rental income is sufficient to cover the mortgage payments, typically requiring rental income to be between 125% and 145% of the monthly mortgage payment, depending on the lender and your tax position.
Deposit requirements are also higher than for residential mortgages, with most lenders requiring a minimum of 25%. Interest rates tend to be higher too, and most buy to let mortgages are arranged on an interest-only basis, meaning monthly payments cover only the interest rather than paying down the loan itself.
A Chat Mortgages adviser can walk you through exactly how this affects the numbers for your specific purchase.
Do I need to be a homeowner to get a buy to let mortgage?
Most buy to let lenders require applicants to own their own home, before they’ll consider a buy to let application.
Some lenders will consider first-time landlord applications from non-homeowners, but the criteria are stricter and the range of products is narrower.
If you’re looking to invest in property before buying your own home, speaking to a Chat Mortgages adviser about your realistic options is the most sensible first step.
How many buy to let properties can I own?
There’s no legal limit on the number of buy to let properties you can own, but lenders apply their own criteria around portfolio size.
Most mainstream lenders will consider applications from landlords with up to three or four properties relatively straightforwardly. Once you own four or more mortgaged buy to let properties, you’re classified as a portfolio landlord, which triggers additional scrutiny. Lenders will typically want to assess the performance of your entire portfolio rather than just the property being mortgaged.
Specialist portfolio landlord lenders exist for this purpose, and a Chat Mortgages adviser can help you navigate the transition from individual landlord to portfolio landlord as your investments grow.
Start your buy to let first time buyer remortgage moving home journey
Tell us about you and what you’re looking to do
THE FCA DOES NOT REGULATE SOME FORMS OF BUY TO LETS, THINK CAREFULLT BEFORE SECURING OTHER DEBTS AGAINST YOUR PROPERTY
